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Kolkata, 09 July 2009: World's largest premium car maker, BMW, has said that it is reconsidering its plan to launch the Mini hatchback in India by the end of this year.
The Mini would be imported and would carry a price tag of around Rs.20 lakhs ($41,000), said Mr.Peter Kronschnabl, President of BMW India. The company had earlier planned to introduce the Mini in India during 2007.
"Last year we decided to postpone the launch of Mini in India by a year, as we had doubts regarding the viability of the project. We would again take a look at it by the end of the third quarter of the calendar year," Mr.Kronschnabl said.
The luxury hatchback market was not developed in India, and the investment to launch a new brand would be substantial, he said.
"So we have to re-look at the potential business opportunity before launching it," he said.
The company sold 1,747 BMWs in the first half of 2009, about a quarter of total Indian luxury car sales of 7,400, and its sales growth of 12% was better than the sector's 1.5%, Mr.Kronschnabl said
"We are confident of delivering 3,000 cars to our customers in India in the year 2009," he added.
The company recently raised annual capacity at its Indian plant to 3,000 units from 1,700 on a single-shift basis at a cost of $7,50,000, he said.
BMW, which competes with European rivals Daimler Chrysler, and Volkswagen in the premium car market in India, makes the 3 and 5 series in India and also sells its 7 series from imported kits.
The German carmaker was close to signing an agreement with global manufacturers for sourcing components from India, starting with forging and casting material, he said.
"All I can say at this moment is that, we are very close to signing contracts with the global manufactures and it should be in place by December 2009," Mr.Kronschnabl said.
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